JOSHUA CORPORATION Condensed Income Statement For the Years Ended December 31 2022 2021 Amount Percent Amount Percent Sales revenue $800,000 100.0% $600,000 100.0% Cost of goods sold 520,000 65.0% 408,000 68.0% Gross profit 280,000 35.0% 192,000 32.0% Selling expenses 120,000 15.0% 72,000 12.0% Administrative expenses 60,000 7.5% 48,000 8.0% Total operating expenses 180,000 22.5% 120,000 20.0% Income before income taxes 100,000 12.5% 72,000 12.0% Income tax expense 30,000 3.8% 24,000 4.0% Net income $70,000 8.8% $48,000 8.0% After you have completed E13.4, consider the additional question. 51. Assume that sales revenue in 2022 changed to $755,000 and cost of goods changed to $512,000. Income tax rate is 30%. Show the impact of these changes on the vertical analysis of the income statement 7 3 0 1 2 3 4 Sales revenue 5 Cost of goods sold 16 Gross profit 27 Selling expenses 28 Administrative expenses 99 Total operating expenses 50 Income before income taxes 51 Income tax expense 52 Net income 2022 Amount Percent $755,000 100.0% 512,000 243,000 120,000 60,000 180,000 53 54